Aaron McDade
2 min read
In This Article:
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Tesla's stock received a pair of downgrades from Argus Research and Baird analysts.
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The analysts said uncertainty after CEO Elon Musk's public spat with President Trump is a negative for the EV maker.
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Tesla is expected to launch its robotaxi service in Austin, Texas as soon as this week, which some bullish analysts have suggested could help the company's stock.
Tesla's (TSLA) stock is starting the week with a pair of downgrades after a public spat between CEO Elon Musk and President Trump erupted last week.
Analysts from Argus Research and Baird each cut their view on the electric vehicle maker, with Argus analyst Bill Selesky citing concerns that the EV maker's stock is "currently trading on non-fundamental events," like Musk's relationship with the Trump administration.
Baird analysts echoed the comments, saying the CEO's proximity to Trump was once seen as a positive after the election, but now "adds uncertainty and fuels questions regarding brand damage."
Both Argus and Baird analysts said that Tesla is still a favorite stock for the long term, but downgraded their ratings to "hold" for the time being. Aside from Argus and Baird, 10 of the analysts tracked by Visible Alpha call Tesla's stock a "buy," while four rate it a "hold," and four give it a "sell." Their average price target of about $304 would suggest roughly 3% upside from Monday's intraday level. Shares were little changed in recent trading, just above $294.
Tesla is expected to launch its robotaxi service in Austin, Texas, as soon as this week, which some bullish analysts have suggested could drive gains for the company's stock—along with a more affordable model that Musk has indicated remains on track to be revealed this month.
The Baird analysts said they expect about 6,000 robotaxis could be on the road by late next year, well below Musk's projected "hundreds of thousands," anticipating the business could be "harder (and likely less profitable) than the lofty expectations held by several investors."
Tesla shares are down nearly 30% since the start of the year.
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